LAHORE:
Punjab Total Debt Actions increased by RS25 billion during fiscal year 2024–25, which reflects an interannual increase of 1.5 percent, according to official budget documents published on Monday.
At the end of the current month, the general debt of the province will reach 1,710 billion RS1,710 billion, compared to RS1,685 billion in June 2024. The debt comprises RS1,709 billion external sources and only RS1.29 billion national lenders, which represents 2.7 percent of the native product disgusted with punjab.
Although the external debt increased by RS26 billion during the year, the internal debt fell from 1.7 billion to RS1.29 billion, marking a 22.5 %decrease. In terms of dollar, Punjab’s external debt is approximately $ 6.1 billion. Most of this debt comes from long -term concessional loans in foreign currencies by multilateral and bilateral lenders.
These include the World Bank, the Asian Development Bank (BAD), the International Cooperation Agency of Japan (JICA) and the International Fund for Agricultural Development (FIDA), as well as bilateral partners such as China, Japan and France. Although these loans are hired by the federal government, Punjab is disbursed to support development initiatives.
The budget report breaks down the external debt in the broad categories of project loans, which finance the long -term public infrastructure, and the loans of programs, which offer budgetary support linked to policy reforms or specific expenses. As of June 2025, Punjab owes $ 4.81 billion to multilateral lenders and $ 1.29 billion to bilateral sources.
The external debt portfolio is largely called American dollars (68%), followed by Special Drawing Rights (SDR) to 23%, a 5%Japanese Yen and other currencies that constitute the remaining 4%.
Regarding the sector, agriculture, irrigation and livestock absorbed most of the investments financed with debt, representing 24% of total pending loans. This was followed by the transport and communications sector with 20%, education with 19%, and urban and community development with 17%. Loans related to governance constituted 11%, the health of 5%, 2%energy, 1%tourism and industries and other 1%infrastructure.
The authorities said that despite the increase in total debt actions, the province maintains a low debt relationship to GSDP and depends predominantly on concessional loans for development priorities.
